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Lone Star Phones sues Dobson

DALLAS-LSPCS Inc., which does business as independent retailer Lone Star Phones, filed suit in federal court against Dobson Cellular Systems Inc. claiming the wireless carrier illegally terminated its contracts, and committed fraud and negligent misrepresentation in its dealings with Lone Star.

The suit, which request at least $27 million in damages, also alleges Dobson employees manipulated the timing of commission payments to the detriment of Lone Star and that its contract was terminated due to the arbitrary actions of Dobson’s market manager.

“They simply failed to do what they promised,” said Steve Davis, president of Lone Star, in a statement. “And, finally, we were terminated because the Dobson market manager was angry at us for making sales in certain areas expressly permitted by the contract.”

Lone Star said its contract with Dobson allowed the agent to act as one of Dobson’s independent agents in three Texas RSA’s.

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